Trend For 1997 Strong Sales Continues In USA

The latest group of US pharmaceutical companies to post full-yearresults for 1997 have continued the trend of strong sales growth.

Allegiance said that strong earnings growth and improved management of working capital has enabled the company to generate $223.6 million of free cash flow for the full year, more than double Allegiance's initial goal. This has allowed the group to invest in four acquisitions (including one in Europe) in 1997, initiate a share-repurchase program and retire some 20% of its long-term debt. Allegiance has reduced its debt-to-capital ratio to 48.7% from 57.2% last year.

Allergan noted that although sales and expense control improved, this was more than offset by the negative impact of a strong dollar and the generic erosion of four major products. Pharmaceutical sales for the fourth quarter slipped 2% to $113.8 million compared to the like, year-earlier period, due to generic competition and high inventory levels.